Algorithm Research

As per BIS working paper, the US has ~700 AI firms. China has ~250. The rest of the world is watching.
The Bank for International Settlements just mapped global AI production across 32 economies and the concentration is striking.

Most economies — including the GCC — exist almost entirely at Layer 1.

Compute. Hardware. Semiconductors.

The value isn't there. The value is in Layers 4 and 5 — AI Models and AI Applications. That's where the US dominates. That's where the revenue is. That's where the jobs of the next decade live.

Three findings from the BIS paper that should matter to every GCC strategist:

🎯 Specialisation gap — Most economies cluster in hardware (Compute), with almost no presence in downstream AI application layers. That's where the economic value is being captured.

🏠 Home Bias in AI investment — Capital flows domestically, to Applications. If your economy isn't building AI applications for your own market, foreign capital — and foreign firms — will.

📈 VC drives density — Venture capital inflows are strongly correlated with AI firm concentration. The GCC's sovereign wealth funds are deploying billions in global AI. The question is: how much is coming back home?

The GCC is at a structural fork.

It can remain a compute-layer economy — supplying the hardware and data centres that power other countries' AI ecosystems.

Or it can build upstream. Applications. Models. Ecosystems designed for Arabic-language markets, Islamic finance, Gulf logistics, and government services.

That second path requires a different kind of intelligence — market, economic, and strategic.

If you're working on AI strategy, market entry, or economic policy in the GCC and want a sharper read on where the region sits in the global AI supply chain — let's talk.

Dubai just dropped a AED 1 billion signal. Not a headline. A playbook for how the city wants businesses to move next.

This package quietly does three big things:

1. Keeps cash inside companies (fees + customs + Tourism Dirham all pushed out)

2. Buys time for CFOs to adjust to higher oil, freight and financing costs

3. Makes it easier for global talent to stay and build in Dubai

In a month where oil is up 40%+, Dubai is saying: we’re not waiting for calm, we’re cushioning the hit and backing growth anyway.

Save this carousel if you run a business, work in finance, or are planning a move to Dubai — this is your next 3–6 months of breathing room.

Follow Algorithm Research for daily GCC breakdowns in plain language, not jargon — and tag someone whose company should be using this package.

A Fed rate decision and its inflation read-through is always closely watched.
Chair Powell clarified that the impact of the Iran war on inflation cannot be quantified at the moment. The Fed seems prepared to look through oil prices if inflation expectations are contained.
There was discussion on tariff impacts on goods prices. It is interesting that things like trucking costs were rising even before the war.

Oil just crossed $100 per barrel. Swipe to understand exactly how this reaches your bills, your mortgage, and your economy — from the Strait of Hormuz to the Federal Reserve.

Comment: Will this push us into stagflation? Save this carousel — you’ll reference it as this develops.

400 million barrels of oil released!
Sounds massive? But spread over 6 months, that's only about 2 million barrels a day. The Strait of Hormuz gap shipped 18 to 20 million barrels — every single day.

400 million barrels of emergency oil release is not enough Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

The Strait of Hormuz isn’t just a shipping lane – it’s a pressure valve for the global economy. With tanker traffic collapsing and key Gulf assets disrupted, the real risk is not today’s price move, but how hard it will be to restart shut‑in production if this lasts.

Strait of Hormuz is a pressure valve of global economy Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

The Economics of War is more about business/consumer sentiment than the destruction of infrastructure. When business sentiment is hurt, hiring and investments take a hit. This spirals into lower consumer confidence leading to consumers cutting down on spending.

In the age of social media, sentiment management is difficult yet essential for any economy to recover from any setback. Negative sentiment can prove to be deadlier than any physical damage from missiles/drone attacks. Agree or disagree?

Sentiment over destruction of infrastructure Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

War news flow may dominate the headlines, but economies don’t stop.

Businesses still invest.
Consumers still spend.

Behind the scenes, economists spend a lot of time translating geopolitics into economic implications.

And occasionally explaining it on TV.

, Founder & CEO of Algorithm Research, was quoted in fDi Intelligence on how London Gateway’s expansion is changing Asia–Europe shipping dynamics.

Historically, a significant share of UK-bound cargo was routed through continental hubs like Port of Rotterdam before entering Britain, often referred to as the “Rotterdam effect.”

Now, with deeper berths and capacity for ultra-large vessels, more services are calling directly on the Thames instead.

This isn’t just about one port.

It reflects broader shifts in post-Brexit trade flows, logistics infrastructure, and supply chain strategy.

Independent regional analysis.
Part of global conversations.

Building a million-dollar business isn’t just about strategy; it’s about mindset, leadership, resilience, and understanding risk.

Here are 5 books you need to read if you’re serious about levelling up:

📘 My Life in Full by Indra Nooyi
A masterclass in leadership, values, and navigating the highest levels of corporate strategy while staying grounded.

📘 Fooled by Randomness by Nassim Nicholas Taleb
Learn how luck, probability, and uncertainty actually shape business success and how to avoid being misled by randomness.

📘 The Lean Startup by Eric Ries
Build smarter, test faster, and scale ideas without wasting time or capital.

📘 Lean In by Sheryl Sandberg
Powerful insights on leadership, ambition, and stepping confidently into bigger opportunities.

📘 The Dale Carnegie Omnibus by Dale Carnegie
Timeless principles on communication, influence, and building strong relationships - the foundation of any successful business.

Save this post for later 📌

Comment “READ” and we’ll DM you more recommendations.

Dubai just strengthened its crypto regulatory framework.

Quiet policy move.
Structural impact.

Follow for GCC policy breakdowns.